Short courses>Foreign exchange options

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Foreign exchange options - 2.5 hours

A foundation course that explains foreign exchange options.

The course provides an explanation of option terminology, the payoff profiles of trades, how these options can be used to hedge and trade and a case study in what can go wrong.

It is suitable for those working in or around financial markets who need to know more.

There are simple examples with time for questions and answers.

This course is only available in-house and is suitable for up to 12 people.

This is what is covered:

Option terminology
Underlying, expiry, premium, exercise and strike
The four basic option trades
Payoff profiles
In the money, at the money and out of the money
What is agreed in a trade
Examples of payoffs on long/short calls/puts
Hedging with foreign exchange options – advantages/disadvantages
What influences the premium cost
Combining options – using one option to pay for another
Exotic foreign exchange options
Why options make people nervous - a case study of Rogue Trading

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